Nigerian Tech Startup, Hotels.ng, Secures $1.2 Million for Cross-African Expansion

Nigeria’s foremost hotel booking platform, [Hotels.ng](https://www.techbooky.com/post-title/business-directory/1757/hotels-ng/), has emerged successful from its recent fundraising effort. In an exciting new development, the tech startup disclosed that it has secured an impressive sum of $1.2 million in funding. This flows from the charitable coffers of Omidyar Network and EchoVC Pan African Fund. The fresh infusion of capital skyrockets the company’s valuation to an estimated $4 million.

Founder of Hotels.ng, Mark Essien, spoke enthusiastically about how this development aligns with the company’s future strategy. He said, “This additional capital will allow us to realize the next stage in our ambitious growth plans. It will see us consolidate our position as Nigeria’s market leader in online hotel bookings, with a view to expanding our service into other African markets, such as Ghana.”


With over 10,000 hotels across Nigeria, Hotels.ng boasts an impressive directory of about 7,000 hotels. Citing a report from AFK insider, Nigerians spend approximately $2 billion annually on local hotel stays. Hotels.ng has strategically positioned itself to target this booming market, processing over 400 bookings daily.

Despite the undeniable growth in online hotel booking platforms, high internet penetration rates and credit card uptake remain challenges in Nigeria – a country populated by over 170 million people – with only 16% having access to the internet. Many Nigerians still resort to traditional booking agencies or in-person hotel bookings upon arrival due to these limitations. However, this could change dramatically over the next decade if projections of a 50% internet penetration rate by 2025 hold true.

Inside the Nigerian tech startup scene, there’s a noticeable trend – startups have showcased impressive growth and a remarkable ability for fundraising. Ventures like Konga.com managed to [raise around $40 million](https://www.techbooky.com/post-title/konga-com-raises-a-fresh-40m-in-venture-fund/) last year to boost its engineering division. Despite the scarcity of homegrown venture capitalists, foreign investors have been stepping in to fill the gap, recognizing the immense market potential in Africa’s largest economy.

While this shift may start with the tech industry, the hope is that the ripple effects will reach farther, transforming the face of Nigeria’s entrepreneurship scene and the African tech startup landscape as a whole.